Thousands of South Australians are seeking a guarantee from the federal government as the future of operations at the Whyalla Steelworks remains uncertain.
Whyalla owner Sanjeev Gupta, chairman of the GFG Alliance, was brought to court by Credit Suisse on Tuesday because of the financial collapse of one of the largest lenders, Greensill. After the collapse, Credit Suisse is trying to recover some of its billions of dollars by splitting Australia’s assets in Gupta.
If the creditor succeeds, it may close two businesses under Gupta and liquidate One Steel Manufacturing and Tahmoor Coal, which operate Whyalla Steelworks.
The GFG Alliance has guaranteed the general public and told InDaily on Wednesday that it has received multiple funding from a large investment fund and is currently conducting a high degree of due diligence.
“The currently proposed term sheet provides creditors with enough cash to repay.” Spokesman said In the statement. “The GFG Alliance expects confirmation due diligence to be completed within a few weeks before the final proposal is accepted.”
South Australian treasurer Rob Lucas tried to reassure OneSteel employees by saying that the proceedings had just begun and that they shouldn’t jump to the “alarmist conclusions.”
“We are confident that GFG will continue to allow the market and government to manage refinancing of its relationship with Greensil,” Lucas said. Said ABC. “We can only accept their words at this particular stage and have to wait for the consequences of the financial renegotiations they have attempted.”
He also said the company was not seeking further financial support from the state government because GFG said it was confident in refinancing.
Whyalla Mayor Claire McLaughlin also sought calm in the community, and the GFG told the local council that it “actively” defended the legal process and ensured that it faced the legal challenges head-on.
“These are all promising signs, so we urge the community to remain positive when this process is carried out and not jump to conclusions based on speculation,” McLaughlin said. Said..
South Australia MP Rowan Ramsey said it was too early to panic, noting that GFG recently announced good performance and positive cash flow in its Australian operations.
“People need to act calmly to solve problems,” Ramsey said. “We can assure you that the residents and businesses of Whyalla are watching the space carefully.”
The proceedings hearing will begin on May 6.